He explains that as the global need for oil grows it puts more money in the pockets of the oil producing countries. He has a great “law” in this chapter that says that as oil prices increases the amount of freedom decreases. I found this very interesting just because the measure of freedom can be very subjective and it depends on what a person’s view of freedom is. He also tries to say that the increase of money in these countries fuels more terrorism. Which is another subjective idea because any country becomes richer would almost everything increase?
Bobby Carl Neal Peters English 102 26 April 2012 What a Fracking Opportunity The United States has an energy problem. We are dependent on Petro-dictators for the energy needed to fuel our economy. But recently, due to a new technology called hydraulic fracturing, or “fracking”, new estimates of accessible natural gas reserves have increased dramatically. Used throughout the United States and worldwide, this process has profitably unlocked Trillions (emphasis added) of cubic feet of natural gas here at home in just the past few years. Concern about this new technology spans the political divide.
One effect of hydraulic fracturing on economics is that it creates a huge increase in profit for natural gas sellers and drillers by opening up the opportunity to tap so much more natural gas than was available before. “North America has approximately 4.2 quadrillion (4,244 trillion) cubic feet of recoverable natural gas that would supply 175 years’ worth of natural gas at current consumption rates.” (Earthworks, N. Loris) Another way it affects the economy is that 10,000 jobs could be created by each drilling site that is opened. (N. Loris) However, a negative effect it has is that it costs about 2 billion dollars for each plant and extra for maintenance and disposal. One last affect hydrofracking has on the economy is it lowers natural gas prices by up to 15 dollars a gallon.
Economic Impact of Hydraulic Fracturing Microeconomics Abstract This paper will present several sides of the issue of hydraulic fracturing (fracking) for natural gas mining. It will highlight the need for a continued energy resource, address issues regarding the environment and look at the economic impact and future potential. So far the practice has been driven more by profits in natural gas than concern for its environmental impact. The fracking process has seen a significant boom in recent years, but has not been matched by significant regulations. The impacts on the environment, human health and the ecosystem are all areas that require well-thought, ethical decisions.
Explain why oil exploration in the areas shown could lead to high economic and environmental costs (10) Oil exploration is the extraction of petroleum from reservoirs underground and using the substance to benefit people. For example using it for transport and industry. However continuous exploitation can lead to costs, which can be both economic and environmental. Figure 1 shows that Canada is a location that is currently exploiting oil, 170 billion barrels per year. With Canada being second to Saudi Arabia to have the largest stores of oil in the country, it can provide large amounts of oil without the need to dig large mines to get to it.
Leslie Fay Companies 1.) Clearly Inventories was a big item to address along with Accounts Receivable. Sales and gross profit were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement.
If standard Oil dominated oil refining, it might raise prices inordinately at vast cost to consumers. Charles Adams said “In the minds of the great majority, and not without reason, the idea of any industrial combination is closely connected with that of monopoly, and monopoly with
First, what is Marcellus shale. The Marcellus Shale is a rock formation that underlies much of PA & portions of New York & West Virginia; it is believed to hold trillions of cubic feet of natural gas. Until the recent advances in drilling technology & the rise in gas prices, this formation has long been considered prohibitively expensive to access. This means that northcentral & northeastern regions of PA may see increases
Holden and Gershkovich make a case for a tax policy that initiates a tax on oil anytime the market price falls below a predetermined threshold. This mechanism, their theory states, would keep oil prices at a level sufficient to stimulate investment in alternative energy sources. Coons, R. (2008, December 22). Alternative Fuels. (Cover story).
Driving cars, heating buildings, producing electricity, people all need gas. Therefore, gas is directly related to people’s normal life and the global economy. Recently, the Middle East political and economic situation has been deteriorating which has led to the continuous hikes of gas prices. The oil price, the volatile situation in Libya and rumblings in Saudi Arabia are being blamed for spiking gas prices. The political turmoil sweeping across countries like Egypt, Libya, Bahrain, and Tunisia have resulted in rising oil and gasoline prices, increased inflation, devalued currencies, and diminishing stock values.